Home World News Wall St. sinks amid China’s Evergrande contagion fears, US debt politics

Wall St. sinks amid China’s Evergrande contagion fears, US debt politics

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Stocks slid Monday, with major indices tumbling by over 2% during the worst points of the afternoon session, as investors nervously eyed the potential ripple effects of the default of a major Chinese real estate company, as well as ongoing debates over the debt limit in Washington. 

After defying gravity for most of the summer, September is shaping up to be a tough month for markets, with major benchmarks in retreat for a third consecutive week. At its worst point of the day, the Dow dropped by as many as 972 points, or 2.8%. However, the index closed pared losses to close lower by 1.8%, posting its worst session since July. The S&P 500 and Nasdaq each posted their worst one-day drops since mid-May.

The CBOE Volatility Index, or Vix (^VIX), jumped by more than 30% to its highest since May, as a confluence of risks roiled markets.  

Shares of China Evergrande Group (3333.HK) plunged by 10% on the Hong Kong Stock Exchange as fears mounted that the…

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